Do equity crowdfunding investors rationally or irrationally herd? We build a model of rational information aggregation … compare the predictions of the model to several alternative models of irrational herding and no herding, and test those … predictions using data on all investments on a leading European equity crowdfunding platform. We show empirically that the size …

crowdfunding has received in the American Jobs Act as a potential avenue for economic growth, as well as the recent focus that … the widely held belief that a key benefit of the crowdfunding model is the potential it offers for awareness and attention …

Most real world situations that are susceptible to herding are also characterized by direct payoff externalities. Yet …, the bulk of the theoretical and experimental literature on herding has focused on pure informational externalities. In … effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet …

predicted by theory, we find that the presence of a flexible market price prevents herding. However, the presence of contrarian …

Most real world situations that are susceptible to herding are also characterized by direct payoff externalities. Yet …, the bulk of the theoretical and experimental literature on herding has focused on pure informational externalities. In … effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet …

explicit nature of the dynamics of the CBS we show that the introduction of herding modifies the random walk to an ARIMA($0 …

is based on three tie-breaking assumptions, which according to Banerjee minimise herding probabilities. In this paper we … herding does not change dramatically, the results obtained, which differ from Banerjee's are the following: players …

Most real world situations that are susceptible to herding are also characterized by direct payoff externalities. Yet …, the bulk of the theoretical and experimental literature on herding has focused on pure informational externalities. In … effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet …

individuals' cognitive profiles to explain investors' herding behavior. Design/methodology/approach – The authors designed and …. Findings – Results confirm that a dependence relation exists between information, investors' behavioral biases and the herding … particularly relevant to explain herding propensity among investors. The findings indicate that the cognitive profile of investors …

It is often assumed that entrepreneurs retain more control of their venture when they opt for equity crowdfunding as … by analysing the cash flow and control rights crowd investors receive in equity crowdfunding in Germany, where more … capital investment contracts are also used in equity crowdfunding contracts. We find that crowd investors are asked to pay …